The mineral exploration company King River Resources Limited (ASX: KRR) has embarked on a journey to expand its project portfolio as it continues to offer good exposure to benefit from the global market interest in Vanadium as well as Gold and Base Metals like Silver and Copper.
On May 2nd, 2019, the company’s wholly-owned subsidiary Whitewater Minerals Pty Ltd, received the grant for Exploration Licence number E80/5133. This forms the first of the nine Exploration Licences applied for in 2017-18 while the remaining are expected to be approved in the upcoming months.
The tenement includes prospective quartz vein structures within the 200-km of under-explored Whitewater Volcanics, a newly identified province prospective for epithermal gold mineralisation. Besides, Whitewater Volcanics also hosts the Mt Remarkable discovery tenement number E80/5007 and the Hunter gold Projects. The drilling at Mt Remarkable with the receipt of the final assay results was completed in 2018.
King River Resources has informed that the exploration at Mt Remarkable would recommence this month (May 2019) along with the reconnaissance mapping and sampling on both E80/5007 and the newly granted E80/5133 to identify the additional mineralised vein sets/structures, ahead of the RC drilling, that is targeted to commence in the September 2019 quarter.
While the 2018 Trudi Main zone grid drilling campaign successfully increased the known high-grade gold zones and identified new areas with high-grade gold mineralisation, the next phase of drilling would again include numerous bountiful targets like Trudi Main, Trudi East Extension, Trudi Main Deeper, New Veins and the future targets generated by 2019 reconnaissance.
As a result of the ongoing pursuits, King River Resources reported approximately AUD 463,000 of net cash burns, for the three months to March 31st, 2019, from operating activities comprising payments for explorations & evaluation (~ AUD 323K) and administration & corporate expenses (~ AUD 141K). The net cash stood at $ 3.68 million at the quarter end.
Since the onset of 2019, King River has also achieved crucial headways regarding the development of the Speewah Specialty Metals (SSM) Project. These cover the Sulphuric Acid-Leach tests and studies and the Como Engineers Capex Opex Scoping Study that demonstrated significantly lower capital costs (~ AUD 939 million). Besides, other test works are also underway to deliver a Prefeasibility Study during the September 2019 quarter.
Led by a Board of distinguished and highly accomplished Directors, the company has established a diversified portfolio of 100% owned tenements covering approximately 2,488 km2 with applications pending for a further 924 km2 in the East Kimberley region in Western Australia. In addition, King River also owns a portfolio of 100% owned tenements (~ 6,619 km2) in the Tenant Creek region of the Northern Territory.
With a significant momentum building in all its ongoing initiatives, King River Resources is evidently propelling its growth and creating shareholder wealth through various excavation initiatives and reassessment of a range of mineral commodities within the existing tenements.
King River Resources closed the half-year to December 31st, 2019 with a net loss of $ 631k while the net assets were valued at ~ $ 18.69 million. During the period, the financing activities generated ~ $ 2.55 million of net cash inflows via proceeds from the issue of shares.
With around 1.24 billion outstanding shares and a market valuation of $ 27.25 million, the KKR stock was trading high at AUD 0.023, shooting up 4.54% with ~ 725,440 shares traded on May 2nd, 2019.
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